Kiwibank reverts its 2-year 'special' to 4.65% but replaces its fighting position with a 1-year 4.29% fixed home loan rate, the lowest of all the majors for that term

Kiwibank is back with a new competitive home loan rate.

It has announced a 4.29% one-year fixed rate ‘special’. This is a -6 basis points reduction from the bank’s previous rate.

It is also the lowest level of any one-year advertised rate in the market at present, other than the 4.19% HSBC Premier offer.

It has nudged ASB’s 4.30% rate off that position, and is -6 to -10 basis points lower than the advertised, or carded, offers from the other large banks. And it bests all the challenger banks (other than HSBC Premier).

At the same time, Kiwibank has ended its competitive 4.49% two-year offer, letting that rate revert back to 4.65% in line with all other majors. BNZ did the same earlier in the week.

The BNZ move came with a few rises in key term deposit rates – so far, there has been no equivalent announcement from Kiwibank of term deposit rate changes.

(Kiwibank’s standard one-year rate is 4.79%, if you can’t meet their condition of 20% equity in the property being borrowed against).

See all banks’ carded, or advertised, home loan interest rates here.

Here is the full snapshot of the fixed-term rates on offer from the key retail banks.

below 80% LVR 6 mths  1 yr  18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at February 16, 2018 % % % % % % %
               
4.99 4.35 5.15 4.65 4.99 5.89 6.09
ASB 4.95 4.30 4.39 4.65 4.89 5.39 5.59
5.35 4.39 5.05 4.65 4.99 5.89 6.09
Kiwibank 4.99 4.29   4.65 4.99 5.65 5.69
Westpac 5.25 4.39 5.15 4.65 4.94 5.89 5.59
               
4.80 4.39 4.69 4.69 4.99 5.39 5.59
HSBC 4.85 4.19 4.19 3.95 4.89 5.29 5.59
HSBC 4.99 4.35 4.59 4.64 4.99 5.49 5.55
4.85 4.49 4.65 4.39 4.89 5.55 5.69

In addition to the above table, BNZ has a fixed seven year rate which is 6.15%.

And TSB still has a 10-year fixed rate of 6.20%.